BILL ANALYSIS Ó SB 1044 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1044 (Nguyen) - As Amended June 13, 2016 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Board of Barbering and Cosmetology (BBC) to determine through regulations when a fine can be assessed to an establishment owner and a licensee for the same violation, authorizes the BBC to establish a payment plan for citations that exceed $500, and makes permissive, instead of requires, the BBC to deny a license or a license renewal if fines are not paid, as specified. FISCAL EFFECT: SB 1044 Page 2 Negligible state fiscal impact. COMMENTS: 1)Purpose. This bill is sponsored by the BBC. According to the author, "This bill will not take away the responsibility of the owner of the establishment, but will allow the BBC to determine when the fine shall be assessed to both the individual and the owner. This allows the BBC to hold individual licensees to a higher level of responsibility, by ensuring that the individual who has attended school and passed the licensing examination is the first line of consumer protection and therefore responsible for upholding the health and safety laws of the BBC. This bill would allow the BBC to work with individuals on a case by case basis to try and set up a payment plan for any outstanding fines." 2)Background. The BBC is responsible for licensing and regulating over 550,000 barbers, cosmetologists, estheticians, electrologists, manicurists, apprentices, and approximately 41,000 establishments, including but not limited to, nail salons, barbers, and hair salons. Licensees working in an establishment can be an independent contractor or an employee of the establishment. Independent contractors are commonly referred to as "booth renters." Booth renters are considered separate business entities operating within the establishment and are responsible for setting their own hours of operation, paying their own required insurance, and maintaining a separate business license. SB 1044 Page 3 Because an establishment owner is responsible for the conduct of all employees (regardless of booth renter or employee status), if a violation is found by an individual, a citation is issued to both the individual and the establishment owner. During the BBC's last sunset review, in March of 2015, the issue was raised regarding booth renter accountability, in that establishment owners are being held accountable for the deficiencies and subsequent violations of booth renters, and individual licensees, not owners, should have to comply with regulations and deal with enforcement actions. It has been reported that establishment owners believe they already have many laws and regulations to comply with and that if something is cited at the station of a booth renter, the establishment owner should not be forced to oversee that renter, and potentially receive a citation and fine for that individual's actions. Owners do not want to be held liable for the actions of individuals who, in their eyes, are independent contractors. By requiring the BBC to establish through regulation when a fine should be assessed to an individual and an establishment owner or to an establishment owner or an individual, this bill seeks to address the issue of establishment owners being fined along with booth renters for the same violation. In the BBC's 2014 Sunset Review Report, it was reported that the health and safety infractions most often cited are violations of rules regarding the disinfection and storage of SB 1044 Page 4 tools, implements, instruments, and products. The top non-health and safety-related violation is not properly displaying establishment or individual licenses as required in Title 16 California Code of Regulations Section 965. Currently, licensees are not able to renew a license unless they have paid all fines as required by the BBC. This bill will revise the current prohibition for licensure renewal if fines are not paid, and provide the BBC with discretion in authorizing a renewal for applicants who may not have all fines or citations paid as a result of a payment plan as determined by the BBC. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081